A GUIDE TO THE

PROJECT MANAGEMENT BODY OF KNOWLEDGE

Introduction & Overview

1 Introduction & Overview

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 1. Introduction & Overview
1.1. Definition of a Project

A project is a unique venture with a beginning and an end,

conducted by people to meet established goals within
parameters of cost, schedule and quality.

A complex, non-routine, one-time effort limited by time, budget,

resources, and performance specifications designed to meet
customer needs.

Examples of projects
 Split the atom
 Channel between England and France
 Introduce Windows XP

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 1. Introduction & Overview
1.1. Definition of a Project (Cont’d)

“A project is an Endeavour in which human, financial and

material resources are organized in a novel way to undertake a
unique scope of work, of given specification, within
constraints of cost and time, so as to achieve beneficial change
defined by quantitative and qualitative objectives”.
Turner, R J (1999), ‘Handbook of project-based management

“A project is a series of tasks, arranged in a defined sequence

or relationship, that produce a pre-defined output or effect.
A project always has a start, middle, and an end”
PMI’s PMBOK

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1. Introduction & Overview
1.1. Definition of a Project (Cont’d)

A project is a temporary endeavor undertaken to create a

unique product, service or result.

 “Temporary”: has a definite beginning and a definite end.

 “Unique product, service or result”: a project creates unique
deliverables, which are products, services or results.
Uniqueness is an important characteristics of project deliverables.

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1. Introduction & Overview
1.1. Definition of a Project (Cont’d)

“Progressive elaboration”: is a characteristic of a project that

accompanies the concepts of temporary and unique.
 “Progressive”: Developing in steps and continuing steadily by
increments.
 “Elaboration”: Worked out with care and detail; developed
thoroughly.

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1. Introduction & Overview
1.2. Project Management

Project management is the application of knowledge, skills,

tools and techniques to project activities to meet project
requirements.

Project management is accomplished through the application

and integration of the project management processes of
initiating, planning, executing, monitoring and controlling,
and closing.

The project manager is the person responsible for

accomplishing the project objectives.

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1. Introduction & Overview
1.2. Project Management (Cont’d)

Project managers or the organization can divide projects into phases to

provide better management control with appropriate links to the ongoing
operations of the performing organization. Collectively, these phases are
known as the project life cycle.

Figure 2-1Typical Project Cost and Staffing Level Across the Project Life Cycle 8
1. Introduction & Overview
1.2. Project Management (Cont’d)

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1. Introduction & Overview
1.2. Project Management (Cont’d)

Figure 2-3.Typical Sequence of Phases in a Project Life Cycle

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1. Introduction & Overview
1.2. Project Management (Cont’d)

Managing a project includes:

 Identifying requirements
 Establishing clear and achievable objectives
 Balancing the competing demands for quality, scope, time
and cost, to produce a quality product or service
 Adapting the specifications, plans, and approach to the
different concerns and expectations of the various
stakeholders.

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1. Introduction & Overview
1.3. General Characteristics of Projects

 Has an established and definable purpose or objective.

 Unique or temporary
 Has a defined life-cycle with a beginning and an end.
 Not part of the main organizational structure, however it typically
requires across-the-organizational participation.
 Involves doing something never been done before.
 Has specific time, cost, & performance requirements & constraints.
 Broken into tasks & subtasks.
 Involving uncertainty and risk.
 Multi-skilled groups (cuts across organizational lines).
 Stakeholders issues (e.g. conflicting agendas)
 Traditional management functions of planning, organizing,
motivating, directing, and controlling apply.
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 1. Introduction & Overview
1.4. Project vs. Operational Work

Work performed by organizations can be categorized as either

projects or operations, however the two share many of the
following characteristics:
 Performed by people
 Constrained by limited resources
 Planned, executed and controlled

Operations are ongoing and repetitive

Projects are temporary and unique

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 1. Introduction & Overview
1.4. Project vs. Operational Work (Cont’d)
Project
1. Unique (new process or product)
2. One objective
3. One shot, limited life span
4. More heterogeneous
5. Systems must be created
6. Performance, cost & time less certain
7. Outside of line organization
8. Variable demand for resources
9. Unique and separate from normal
organization work
10. Sponsor - Multiple stakeholders
Operational Work
1. Repeat process or product
2. Several objectives
3. On-going day to day activities
4. People are homogeneous
5. Systems in place
6. Performance, cost, & time known
7. Part of the line organization
8. Stable demand for resources
9. Use existing systems, properties,
and capabilities
10. Supervisor - Department
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1. Introduction & Overview
1.4. Project vs. Operational Work (Cont’d)

“Projects, rather than repetitive tasks, are now the basis for most
value-added activities in business”
-Tom Peters

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 1. Introduction & Overview
1.4. Project vs. Process (Cont’d)
Projects
1. Writing a term paper
2. Setting up a sales kiosk for a
professional accounting meeting
3. Developing a supply-chain
information system
4. Writing a new piano piece
5. Designing an iPod that is
approximately 2 X 4 inches,
interfaces with PC, and stores
10,000 songs
6. Wire-tag projects for GE and
Wal-Mart
Routine, Repetitive Work
1. Taking class notes
2. Daily entering sales receipts into the
accounting ledger
3. Responding to a supply-chain request
4. Practicing scales on the piano
5. Routine manufacture of an Apple
iPod
6. Attaching tags on a manufactured
product
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1. Introduction & Overview
1.5. Importance of a Project Management

Factors Leading to the Increased Use of Project Management, are:

 Compression of the product life cycle
 Global competition
 Knowledge explosion
 Corporate downsizing
 Increased customer focus
 Small projects that represent big problems

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 1. Introduction & Overview
1.6. Project Management Constraints

Triple Constraint: project scope, time and cost

 Project quality is affected by these three factors

 High quality projects deliver the required product, service or
result within scope, on time and within budget
 Any change in one of the three factors at least one other factor is
likely to be affected
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Co
m

Cost
st
Ti

Resources e
op y)
Sc t
u ali
q
(o r
Scope (Quality)
Time

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1. Introduction & Overview
1.6. Project Management Constraints (Cont’d)

Defining Success
Project completion
 Within Time,
 Within Cost,
 Within Quality, and
 Accepted by the Customer.

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1. Introduction & Overview
1.7. Challenges of a Project Manager

The Project Manager

 Manages temporary, non-repetitive activities and frequently
acts independently of the formal organization.
• Marshals resources for the project
• Provides direction, coordination, and integration to the
project team
• Manages a diverse set of project stakeholders
• Dependent upon others for technical answers
• Is responsible for performance and success of the project

 Must induce the right people at the right time to address the
right issues and make the right decisions.

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1. Introduction & Overview
1.7. Challenges of a Project Manager (Cont’d)

Figure 1-2. Areas of Expertise Needed by the Project Team

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1. Introduction & Overview
1.7. Challenges of a Project Manager (Cont’d)

 Project Planning:
• Definition of work requirements
• Definition of quantity and quality of work
• Definition of resources needed

 Project Monitoring:
• Tracking progress
• Comparing actual outcome to predicted outcome
• Analyzing impact
• Making adjustments

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1. Introduction & Overview
1.8. Project Management Certifications

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